The lender Partners with Vegapay to Launch Credit Line on UPI (CLOU)
FinTech BizNews Service
Mumbai, September 22, 2025: In a transformative move set to redefine the way credit is accessed and consumed in India, Suryoday Small Finance Bank (SSFB), a leading new-age digital bank in India, announces its strategic partnership with Vegapay, a credit infrastructure platform, to enable Credit Line on UPI (CLOU) for both existing and new-to-bank customers. The integration allows users to access short-term, real-time credit directly through the UPI platform—offering a fast, secure, and paperless borrowing experience.
Over 400 million Indians still lack access to formal credit, despite widespread digitisation. Conventional products, often designed for urban, salaried users, fail to address the realities of the broader population. With this launch, Suryoday takes a decisive step toward bridging that divide. The product offers instant disbursals, seamless repayments, and transparent terms—all accessible through a smartphone and UPI interface. This partnership marks a significant step in reimagining credit for “Bharat”—bringing formal, digital credit into the hands of underserved and underbanked segments.
Credit Line on UPI (CLOU) is a groundbreaking financial solution, introduced by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), aimed at making credit easily accessible. This product allows individuals and small businesses to tap into pre-approved credit from banks, instantly using it for any UPI transaction. By providing frictionless access to credit lines, overdrafts, and retail loans, it not only drives economic growth but also significantly enhances financial inclusion across the board.
The product is powered by Vegapay's Credit Line Management System (CLMS), a modular, API-first, microservices-based platform specifically designed for UPI-integrated credit. This robust infrastructure enables Suryoday Small Finance Bank to seamlessly launch, customize, and manage CLOU with end-to-end control and full regulatory compliance. With deep integration across the UPI ecosystem, Vegapay's platform ensures frictionless onboarding, instant credit access, and smooth repayment journeys directly through the mobile interface consumers already use daily. Vegapay's proven technology, already adopted by multiple financial institutions, positions it as a key enabler of India's growing CLOU ecosystem.
The benefits of CLOU are manifold. It offers instant and seamless access, allowing users to tap into pre-approved credit instantly for their UPI transactions, eliminating delays typically associated with traditional credit applications. It fosters financial inclusion by democratizing credit access for a wider population, especially those who might not have a formal credit history or access to conventional credit products.
Commenting on the occasion, Vishal Singh, Chief Information Officer and Head - Digital Banking at Suryoday Small Finance Bank, said, “At Suryoday, our core mission has always been rooted in driving financial inclusion with dignity and innovation. India is at a critical juncture—hundreds of millions remain underserved by traditional credit systems, despite the digital revolution all around them. Our partnership with Vegapay brings this vision to life. With their robust Credit on the UPI platform, we’re able to serve both our customers with a seamless, paperless credit experience—without compromising on compliance or control.”
Gaurav Mittal, CEO & Co-Founder, Vegapay: “Credit Line on UPI is transforming access to credit for underserved consumers and small businesses. At Vegapay, we are proud to enable this shift with a real-time, modular system built into the UPI stack. Our work with Suryoday sets a blueprint for how banks can deliver modern, seamless credit without legacy constraints. We are building the infrastructure for India’s next 500 million borrowers.”
For Suryoday, this partnership is more than just a product launch; it's a blueprint for modern credit infrastructure in India—real-time, embedded, modular, and built for scale. By integrating digital credit into the UPI experience, the SSFB is creating an inclusive, paperless, and real-time borrowing journey for customers across geographies and income segments, through a simple mobile interface. The product construct is available up to Rs 1,00,000 currently and will be dynamic for each lender.
